Commercial Real Estate Funding- Gas Stations Loans

One of my favorite niches in commercial financing is gas station financing. "A paper" conventional financing through "hard money", I would like to hear from you. I can only help if the loan is secured by real estate. I cannot help the business owner leasing the convenience store from the actual owner of the property. Right now for the most part we have "A & D Financing". No "B or C"

Many gas station owners are discouraged by the apparent lack of cash flow on their tax returns. In many cases there are other factors that I can add back in order to qualify the gas station owner. Equity in the property doesn't hurt either. Like any other commercial loan we will need to show experience and expertice in your line of work. If you are purchasing a station, we will need to see records from the previous owner as to whether the location was profitable or not.

In most cases, I can provide a five year term with a 20 to 25 year amortization. Gas prices fluctuate so this loan should always be a work in progress. If you are new to the business, you may need an SBA loan, private money and / or a seller held second to get you off the ground. After the business and property is stabilized, We can seek"A paper" financing when we can document income properly and most likely you will be asked to set up savings accounts with the lender in question..

Currently, typical gas station financing for a good customer is around ? on a 20-25 year amortization. Usually the floor would also be ?% with a the prime rate being the index with a margin of 1-2% over prime. (Currently the prime rate is at ?%.)

 Conventional Gas Station Financing:

• 75% - 80% financing
• 20 - 25 year amortization
• 5 year term then the loan recasts based on the margin and the index
• no pre-payment penalty
• borrower is required to show expertice and experience in that line of work
• debt service is 1.2% or better
• seller held second O.K
• easy process
• cost is usually one point

Small Business Administration Financing:

• 90% financing plus closing costs and "soft costs" or upgrades rolled in
• 30 year amortization
• pre-payment penalty
• financing broken down into two loans, very aggressive rates
• less experience and expertice required
• Debt service is 1.15% or better
• process is somewhat more involved although not as bad as it used to be
• cost is usually two points 

 SBA allows you to finance 90% and includes closing costs and soft costs which are upgrades to the property. Conventional financing will finance 75% to 80%. SBA will have a pre-payment penalty where conventional will not.

This could be you !

If you are in need of a good commercial realtor who can find you a deal on a gas station give Vincent D'Agati a call: 561-964-9566

CommercialRealEstateWestPalmBeach

If you require an unusual niche with regards to commercial financing I have sources that can help you with private money financing and even loans on raw land.